S.L. 403.25 Art. 5Protection and Compensation Fund Management Committee.

(1) There shall be a Management Committee to be known as the Protection and Compensation Fund Management

Committee which shall consist of a chairperson and seven (7) members to be appointed by the competent authority and which shall include among its members:

(a) an officer, performing duties with the competent authority possessing the necessary expertise and experience in business of insurance;

(b) three (3) persons nominated by an association or other body representing insurers and recognised for such purpose by the competent authority, of whom:

(i) one (1) person shall represent insurers whose head office is in Malta which carries on general business in Malta;

(ii) one (1) person shall represent insurers whose head office is in Malta and which carries on long term business in Malta; and

(iii) one (1) person shall represent insurers whose head office is in Malta and which carries on motor vehicle liability insurance business in Malta;

(c) a person who, because of experience, qualifications or activities is considered as being able to state and represent the point of view of consumers of financial services;

(d) an independent person who, in the opinion of the competent authority, possesses the necessary expertise and experience in financial services; and

(e) a person who represents insurers whose head office in Malta and which carries on motor vehicle liability insurance business from Malta:

Provided that such members of the Management Committee shall serve the Protection and Compensation Fund in their own personal capacity and shall not represent or receive directives or instructions from the person or entity nominating them. All members of the Management Committee shall work in the best interest of the Protection and Compensation Fund and shall pursue and promote its purposes.

(2) Whenever, for any reason whatsoever, the association or other body representing insurers referred to in sub-regulation (1)(b) fails to nominate, within the time given to it for such purpose by the competent authority the persons, or any of the persons, which it is required to nominate under the said sub-regulation, the competent authority shall appoint the persons, or the remaining persons, having regard to the nomination provisions of sub-regulation (1).

(3) A person nominated by an association or other body representing insurers shall not be eligible for appointment if he has a financial or other interest that is likely to affect the discharge by him of his functions under these regulations.

(4) Every member of the Management Committee shall hold COMPENSATION FUND)

office, including the office of chairperson, for such period and upon such terms and conditions as may be determined by the competent authority and indicated in the letter of appointment, such term of office being not less than one (1) year and not more than three (3) years. Every member of the Management Committee, including the chairperson, shall be eligible for re-appointment.

(5) A member of the Management Committee may be relieved from office by the competent authority on the grounds of inability to perform the functions of his office, whether due to infirmity of mind or of body, or to any other cause, or of misbehaviour. For the purposes of this sub-regulation, repeated and unjustified non-attendance of the meetings of the Management Committee may be deemed to amount to misbehaviour.

(6) A member of the Management Committee may resign from office by letter addressed to the competent authority.

(7) The competent authority shall fill any vacancy occurring in the Management Committee for any reason whatsoever as early as the vacancy occurs. In so doing, the competent authority shall have regard to the nomination provisions of sub-regulation (1).

(8) Notice of the names of the members of the Management Committee and of any resignation, dismissal and new appointment shall be published in the Gazette.

(9) The Management Committee may act notwithstanding any vacancy among its members but shall conduct business only if at least four (4) members are present.

(10) Whenever at any meeting of the Management Committee the chairperson is absent, the members present for that meeting shall elect from among themselves a person to act as chairperson and to conduct the proceedings of such meeting.

(11) Decisions of the Management Committee shall be taken by a majority of votes of the members present. The chairperson shall have an original vote and, in the event of an equality of votes, a second or casting vote.

(12) Subject to the provisions of the Act and of these regulations, the Management Committee shall have the power to regulate its own proceedings and may also establish such procedures or make such rules as it may deem appropriate for the better fulfilment of its purposes.

(13) Subject to sub-regulation (14), the Management Committee shall pay to the chairperson and each member of the Management Committee such remuneration as it may determine.

(14) Any determination of the Management Committee with respect to the remuneration to be paid to the chairperson and to any member of the Management Committee shall be subject to the approval of the competent authority.

(15) The competent authority shall appoint one (1) of its officers to serve as secretary to the Management Committee. Such person shall be responsible to make the necessary preparations for the meetings of the Management Committee and to keep the minutes thereof.